Homework: HW #6 - Chapter 8 Save 9 of 10 (7 complete) HW Score: 57.19%, 5.72 of 10 pts Score: 0 of 1 pt E8-29A (similar to) Question Help (Click the icon to view the outsourcing decision analysis.) WorldSystems manufactures an optical switch that it uses in its final product. WorldSystems incurred the following manufacturing costs when it produced 70,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell World Systems the switch for $17.50 per unit. If WorldSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. WorldSystems needs 84,000 optical switches next year (assume same relevant range). By outsourcing them, WorldSystems can use its idle facilities to manufacture another product that will contribute $100,000 to operating income, but none of the fixed costs will be avoidable. Should World Systems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) WorldSystems Best Use of Facilities Analysis * Data Table Buy and Use Facilities for Other Make Product Direct materials Direct labor Variable MOH 700,000 140,000 210,000 385,000 1,435,000 Fixed MOH Total variable cost of obtaining the optical switches Total manufacturing cost for 70,000 units $ Expected net cost of obtaining the optical switches Print Done Choose from any list or enter any number in the input fields and then click Check Answer. - part